At Bridging Finance, we understand that life transitions can be both exciting and stressful. In this case, we helped a retired couple downsize from their large family home to a more manageable property, offering them the financial flexibility they needed during the process.
The Challenge
Our clients, a retired couple, had lived in their family home for over 30 years. As they approached their golden years, they decided it was time to downsize to a smaller, more convenient property closer to their grandchildren.
They found the perfect new home but encountered a common obstacle: the sale of their existing property was taking longer than expected, and they didn’t want to risk losing their ideal home to another buyer.
Without the proceeds from their current home sale, they lacked the immediate funds needed to complete the purchase. Given the competitive nature of the property market, time was critical, and they needed a fast, reliable financing solution.
Why They Chose Us
The couple decided to use Bridging Finance after being impressed during their initial phone call with our team. They described the conversation as friendly, transparent, and reassuring—key qualities they were looking for in an adviser.
Our Solution
- Initial Consultation and Understanding Their Needs
During the first phone call, we took the time to understand their unique situation and goals. We explained how bridging finance works, focusing on how it could help them buy their new property without waiting for the sale of their current home. The couple appreciated our clear and jargon-free explanations, which made them feel confident in moving forward.
- Detailed Support with the Application
Over several Zoom calls, we worked closely with the couple through their bridging loan application. We walked them through each form, providing detailed explanations of every term and requirement. Our team ensured they fully understood the loan terms, interest rates, fees, and repayment timeline, giving them complete peace of mind.
- Transparent Breakdown of Costs
One of their primary concerns was understanding the costs involved. We provided a clear and detailed illustration of all potential expenses, including interest, facility fees, valuation fees, and legal costs. By breaking down each cost line by line, we ensured there were no surprises along the way – including explaining how much it would cost specifically depending on when they were able to repay.
- Guidance on Valuation and Legal Work
We coordinated the property valuation and introduced the couple to a solicitor experienced in bridging finance transactions.
- Regular Updates and Hand-Holding Throughout
Throughout the process, we maintained regular contact with the couple, providing updates on every stage of the application. Whether via phone or email, we ensured they always felt supported and informed. Our proactive approach meant they never had to chase us for information or worry about delays.
- Smooth Fund Release
Once everything was in place, the funds were released promptly, allowing the couple to complete the purchase of their new home without any issues. We continued to check in with them even after the transaction, ensuring they were on track with their exit strategy—repaying the loan once their original property sold.
The Costs
In this case, the clients needed to borrow £375k which was the full value of the property. Their current home was worth £480k, but they had an outstanding mortgage of £160k on the property.
- This took their loan-to-value to ratio to 66%.
- Qualifying them for a competitive interest rate of 0.73% per month.
Their existing home sold after just 4 months of being on the market after securing their bridging loan, meaning they could repay significantly early.
Their total interest charges came to £16,860, and their other fees such as legal costs and admin fees came to just over £3,000, meaning their total cost was just under £20,000 for the bridging loan – well worth securing their lifelong retirement home for.
If you’re considering a bridging loan, get in touch with us today. Our friendly team is ready to offer a free, no-obligation quote and guide you through every step of the process.